SK Hynix Inc.'s $26.5 billion US listing kept the streak of AI-related mega-deals going in Q3, even as three postponed smaller IPOs cast doubt on the market aside from Anthropic PBC's expected debut. IPOs on US exchanges raised $36.1 billion in the three months ended Sept. 30, excluding blank-check firms, with the South Korean memory chipmaker's ADR sale accounting for the bulk, per Bloomberg data. The latest quarter was the second-busiest since 2021, trailing only the $117 billion Q2 bonanza led by Space X.
Three companies postponed sizeable IPOs in September, blaming the market despite stock benchmarks hitting all-time highs. Institutional investors lacked conviction, especially long-only investors, said Renos Savvides of Neuberger Berman Group. Backing the biggest issuers proved a winning strategy: Space X and SK Hynix are up 12% and 24% respectively since debuts, lifting weighted average return from this year's US IPO class to 8.8%. Excluding deals raising more than $10 billion, US IPOs this year have fallen 4%.
Listings for SK Hynix, Bending Spoons SpA, Csquare Inc., and Jersey Mike's Subs Inc. each raised more than $1 billion in Q3. Csquare and Jersey Mike's now trade 25% or more below IPO prices. With $162.6 billion raised this year, all eyes are on a potential Anthropic listing raising as much as Space X or more, which would propel total volume past the $195.2 billion 2021 record.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing